Virginia Law

A. As used in this section, "manufacturer" means an "electronic gaming manufacturer" as defined in § 18.2-340.16 of the Code of Virginia.

B. Prior to providing any electronic gaming device or distributed pull-tab system, a manufacturer shall submit an application on a form prescribed by the department and receive a permit. A $1,000 application fee payable to the Treasurer of Virginia is required. In addition, a manufacturer must be authorized to conduct business in the Commonwealth of Virginia, which may include registration with the State Corporation Commission, the Department of Taxation, and the Virginia Employment Commission. The actual cost of background investigations for a permit may be billed by the department to an applicant.

C. The department may refuse to issue a permit or may suspend or revoke a permit if an officer, director, employee, agent, or owner:

1. Is operating without a valid license, permit, or certificate as a supplier, network bingo provider, or manufacturer in any state in the United States;

2. Fails or refuses to recall a product as directed by the department;

3. Conducts business with unauthorized entities or is not authorized to conduct business in the Commonwealth of Virginia;

4. Has been convicted of or pleaded nolo contendere to any crime as specified by § 18.2-340.34 B of the Code of Virginia; has had any license, permit, certificate, or other authority related to activities defined as charitable gaming in the Commonwealth suspended or revoked in the Commonwealth or in any other jurisdiction; has failed to file or has been delinquent in excess of one year in the filing of any tax returns or the payment of any taxes due the Commonwealth; or has failed to establish a registered office or registered agent in the Commonwealth if so required by § 13.1-634 or 13.1-763 of the Code of Virginia. As this provision relates to employees or agents, it shall only apply to individuals involved in sales to or solicitations of customers in the Commonwealth of Virginia;

5. Fails to notify the department within 20 days of the occurrence, knowledge, or receipt of the filing of any administrative or legal action relating to charitable gaming or the distribution of a distributed pull-tab system involving or concerning the manufacturer, any officers or directors, employees, agent, or owner during the term of its permit;

6. Fails to provide to the department upon request a current Letter for Company Registration on file with the U.S. Department of Justice if required in accordance with the Gambling Devices Act of 1962 (15 USC §§ 1171 through 1178) for any device that it distributes in the Commonwealth of Virginia;

7. Has been engaged in conduct that would compromise the department's objective of maintaining the highest level of integrity in charitable gaming; or

8. Violates any provision of the Charitable Gaming Law or regulation adopted pursuant thereto.

D. Before denying, suspending, or revoking a manufacturer's permit, the department shall give the manufacturer a statement documenting the grounds for such action and an opportunity for a hearing as outlined in Part VI (11VAC20-20-600 et seq.) of this chapter.

E. A manufacturer shall not distribute a distributed pull-tab system for use by anyone in the Commonwealth of Virginia other than to an authorized social organization, qualified organization operating and conducting electronic gaming in accordance with the Charitable Gaming Law and regulations established thereto or a permitted supplier.

All such distributions shall be documented pursuant to subsection I of this section and reported to the department pursuant to subsection K of this section.

F. No manufacturer of a distributed pull-tab system, the manufacturer's agent, or the manufacturer's employee shall be involved in the management, operation, or conduct of charitable gaming in the Commonwealth of Virginia. No member of a manufacturer's immediate family or person residing in the same household as a manufacturer may be involved in the management, operation, or conduct of charitable gaming of any customer of the manufacturer in the Commonwealth of Virginia. No manufacturer of a distributed pull-tab system, the manufacturer's agent, or the manufacturer's employee may participate in any charitable gaming of any customer of the manufacturer in the Commonwealth of Virginia. For the purposes of this chapter, servicing a distributed pull-tab system shall not be considered conduct or participation.

G. The department shall conduct a background investigation prior to the issuance of a permit to any manufacturer. The investigation may include the following:

1. A search of criminal history records on all officers, directors, and owners;

2. Verification of current compliance with Commonwealth of Virginia tax laws; and

3. Verification of current compliance with Virginia gaming laws or the gaming laws of any other state.

If the officers, directors, or owners are domiciled outside of the Commonwealth of Virginia or have resided in the Commonwealth of Virginia for fewer than five years, a criminal history search conducted by the appropriate authority in any state in which the officers, directors, or owners have resided during the previous five years shall be provided by the applicant.

H. Appropriate information and authorizations shall be provided to the department to verify information cited in subsection F of this section.

I. Manufacturers shall document each distribution of a distributed pull-tab system to any person for use in the Commonwealth of Virginia on an invoice that reflects the following:

1. Name, address, and organization number of the organization or supplier;

2. Date of sale or rental and location where the distributed pull-tab system is shipped or delivered if different from the billing address;

3. Name, form number, and serial number of each deal of electronic gaming;

4. Quantity of deals sold, the cost per deal, the selling price per card, the cash take-in per deal, and the cash payout per deal;

5. Serial number of each electronic gaming device, a description of the physical attributes of the electronic gaming device, the quantity of electronic gaming devices sold or rented, and the physical address to which each electronic gaming device is shipped or delivered;

6. Serial number and description of any other equipment sold or rented that is used to facilitate the distribution, play, and redemption of electronic gaming and the physical address to which the equipment is shipped or delivered ; and

7. For electronic gaming, the gross receipts or ticket sales, prizes paid out, electronic gaming adjusted gross receipts, cost of the use of the distributed pull-tab system, rebates, discounts, refunds, and any other information deemed necessary by the department.

J. Manufacturers shall ensure that two copies of the detailed invoice are provided to the customer for each distribution of a distributed pull-tab system.

K. Each manufacturer shall provide a report to the department by March 1 of each year on the distribution of a distributed pull-tab system for the fiscal year ending December 31 of the previous year to each organization and permitted supplier in the Commonwealth of Virginia. This report shall be provided to the department via a department-approved electronic medium. The report shall include the name, address, and organization number of each organization and permitted supplier and the following information for each sale or transaction:

1. Deals of electronic games, including purchase price, deal name, deal form number, quantity of electronic gaming in deal, electronic pull-tab price, cash take-in per deal, cash payout per deal, and quantity of deals;

2. Equipment used to facilitate the distribution, play, and redemption of electronic games, including purchase or rental price, description of equipment, quantity of units of each type of equipment, and the physical address to which the equipment is shipped or delivered; and

3. Complete record of all electronic gaming adjusted gross receipts, itemized by organization.

L. A manufacturer that fails to file the annual sales report in accordance with subsection J of this section shall be subject to a penalty of $25 per day for each day following the report's due date until such time as the report is filed.

M. A manufacturer, a manufacturer's agents and employees, members of a manufacturer's immediate family, or persons residing in a manufacturer's household shall not make any loan directly or indirectly to any organization or officer, director, game manager, or entity involved in the management, operation, or conduct of charitable gaming of the manufacturer's customer located in the Commonwealth of Virginia.

N. A manufacturer, a manufacturer's agent, or a manufacturer's employee shall not directly or indirectly provide a rebate, discount, or refund to any person other than an organization that purchases, rents, or leases a distributed pull-tab system from the manufacturer. All such transactions shall be recorded on the manufacturer's account books and invoices provided to the organization.

O. A written agreement specifying the terms of lease or rental shall be required for any equipment used to distribute, play, or redeem electronic gaming provided to an organization or permitted supplier.

P. A manufacturer shall notify the department when an electronic gaming device bearing a device tag affixed by the department is moved from one location to any other location.